Alibaba to split itself into 6 business groups

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Alibaba is separating the company into six business groups as it looks to react faster to market changes and increase its value.

is splitting itself into six business groups as the Chinese e-commerce company attempts to become more nimble in reacting to changes in the market and increase the value of those units.Alibaba Group Holding Ltd. said in a regulatory filing Tuesday that the six new groups will be made up of the Cloud Intelligence Group, Taobao Tmall Business Group, Local Services Group, Global Digital Business Group, Cainiao Smart Logistics and Digital Media and Entertainment Group.

The Cloud Intelligence Group includes cloud, artificial intelligence and DingTalk. The Taobao Tmall Business Group includes Taobao, Tmall, Taobao Deals, Taocaicai and 1688.com. The Local Services Group includes Amap and Ele.me, while the Global Digital Business Group includes Lazada, AliExpress, Trendyol, Daraz and Alibaba.com. The Digital Media and Entertainment Group includes Youku and Alibaba Pictures.After China imposed a record antitrust fine on Alibaba Group Holding Ltd.

Alibaba has faced increased competition from short-video platforms such as Douyin and Kuaishou, which also offer e-commerce services on their platforms. Its U.S.-listed stock has also been on the decline since a regulatory crackdown on the technology industry in November 2020 that saw regulators halt the initial public offering of its financial arm Ant Group and crack down on anticompetitive practices across the technology industry.resurfaced in China after months of overseas travel.

The Chinese government has been seeking to raise confidence in the private sector after regulatory crackdowns on technology, education, online gaming and financial companies, and harsh COVID-19 restrictions slowed the economy. Ma stepped down as Alibaba chairman in 2019, saying he hoped to focus on philanthropy. In January, he ceded control of Ant, the financial technology firm, amid a revamp of its shareholding structure.

 

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